BBA Members Vote Formally to Relinquish Operation of Libor

Feb. 25 (Bloomberg) -- Members of the British Bankers’
Association voted formally to relinquish operation of the London
interbank offered rate in the wake of the rate-rigging scandal.

The BBA will transfer Libor to a new operator to be
selected by a committee chaired by Sarah Hogg, chairwoman of the
Financial Reporting Council, the London-based lobby group said
in a statement today after an extraordinary general meeting of
members.

British Regulators said in September they would strip the
BBA of responsibility for the benchmark interest rate for more
than $300 trililon of securities. Barclays Plc, UBS AG and Royal
Bank of Scotland Group Plc have been fined more than $2.5
billion by U.S. and U.K. regulators for manipulating the rate,
and more than a dozen more firms are still being probed.

“The absolute priority is to ensure the provision of a
reliable benchmark which has the confidence and support of all
users, contributors and global regulators,” the BBA said in the
statement.